Osborne accused of claiming false victory in EU budget row

Britain's Chancellor of the Exchequer George Osborne (R) and Bank of England Governor Mark Carney (L) attend a meeting of G-20 finance ministers and central bank governors during the IMF-World Bank annual meetings in Washington October 10, 2014.Jonathan Ernst

LONDON (Reuters) - Finance minister George Osborne was criticised by the head of a parliamentary committee on Wednesday for claiming victory in a row with the European Union over an unexpected bill that triggered a diplomatic bust up with EU officials.

In November a statistical review of national income data generated a 2.1 billion euro bill that caught Prime Minster David Cameron by surprise, provoking a furious response.

The row inflamed tensions with Cameron's European counterparts and agitated the rebellious Eurosceptic wing of his Conservative party at a time when rising anti-EU sentiment among voters has forced Britain to contemplate leaving the bloc.

Osborne later claimed success in the budget battle, saying Britain would pay only half of what Brussels demanded, but EU officials said payment had not been reduced, only offset, and domestic political rivals accused Osborne of deception.

Osborne was on Wednesday criticised by parliament's Treasury Select Committee, which said the reduction was down to a rebate that was due to be paid anyway.

"It seems to me ... the bottom line didn't change a scrap," said committee chairman Andrew Tyrie, a Conservative lawmaker and respected former Treasury minister whose criticism will come as an embarrassment to Osborne.

Giving evidence to the session scrutinising his department, Osborne disagreed, saying that it had not been clear the rebate, which cut the bill by around a billion euros, was due to be disbursed.

He maintained that he had successfully fought to protect the British taxpayer.

"Having looked at the papers it seems to me pretty clear, and I'm surprised that you feel ... that it wasn't really clear," Tyrie said to senior Treasury official Mark Bowman who appeared before the committee alongside Osborne.